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The Demise of Resources Unlimited

The Demise of Resources Unlimited. Leanne Craft. Content. Baseline Profits Gas Accounts Salaries for Entry-Level Management Warding off Bankruptcy Avoiding Discrimination Corporate Management Style Accounting Practices Profit Structure Lines of Communication. Baseline Profits.

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The Demise of Resources Unlimited

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  1. The Demise of Resources Unlimited Leanne Craft

  2. Content • Baseline Profits • Gas Accounts • Salaries for Entry-Level Management • Warding off Bankruptcy • Avoiding Discrimination • Corporate Management Style • Accounting Practices • Profit Structure • Lines of Communication

  3. Baseline Profits Baseline: 803 Million Baseline: 1.087 Billion

  4. Gas Accounts • Current trends in 1988 • 32 Gas Accounts • 64 Oil Accounts • Ratio being provisional for forecasting to stay with same trend. • 32:64 is 50% • Stay with the same trend in 1990 • Trending in 1990 • We know there are 86 Oil accounts • To stay with the same trend then 50% of 86 would need to be the number of gas accounts • Gas Accounts in 1990 • 43 Gas Accounts

  5. Salaries for Entry-Level Management • The mean for what we know. • Currently we know 4 out of 5 salaries. • $50,000 • $55,000 • $52,000 • $32,000 • If we assume this is entry level • The salary would be about $47,000 for starting management.

  6. Warding Off Bankruptcy • Facts: • It takes 500 gas accounts to maintain cash flows for 30 days. • If this was occurring frequently that would mean thousands were being transferred. • Not knowing the actually amounts: • Every 6 months 3000 accounts would need to be transferred and each year 6000 accounts would have to be transferred. • If this occurred from 1990 to 1994 anywhere from 18-24 thousand accounts were transferred to keep the company afloat.

  7. Avoiding Discrimination • We know that the top three employees were getting paid • $55,000 • $50,000 • $52,000 • The standard deviation for these is $2,516.61 • To be considered discrimination there would need to be two standard deviations from the mean of the top three • We can see that the mean is $52,333.33 and we would then subtract $2516.61 x 2. This gives us $5033.22 and we would then subtract that from $52333.33 for a total of $47300.11. • This would prove the case for discrimination and that it was happening.

  8. Corporate Management Style • The CEO of Resources Unlimited ignored the information that was given to him by accountants. • This could be considered to be immoral or unethical • In today’s world on Wall Street this would have created things such as watermelon stocks • The CEO also had a discrimination claim on his record and could be considered sexist

  9. Accounting Practices • The accountants wanted to follow the rules of accounting • Wanted to only report things that would be accurate and not skewed to Wall Street • Follow the regulations of the GAAP

  10. Profit Structure • Because baseline profits were skewed this caused problems when real figures came in • Because the company was publicly traded the numbers being reported needed to be spot on for reporting

  11. Lines of Communication • Between CEO and Accountants • Poor or ignored • The regulations were not set • Between CEO and Employees • Biased • Caused discrimination issues

  12. Questions Thank You For Your Time

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